Passage 4
Innovation starts at the top， and it is important for leaders to create an environment where innovation is constant， where people have the skills and incentives to think creatively. In doing so， you attract talents that want to contribute to that environment， creating a virtuous cycle for the company. Shanghai’s leadership has worked hard to create an environment where businesses can succeed. For example， Shanghai’s transportation links to the world， including Pudong International Airport and the new deep water port facility， have achieved world-class status We live in an era where innovation is central to economic growth and prosperity. It is comfortable to hold onto the old ways of doing business. But innovation is hard because it usually leads to change. Innovation requires new ideas， new processes， and new institutions. New technologies and approaches can radically change an existing market， creating new customers and competitions. But innovation and its accompanying disruption can be managed through good leadership， a long term strategy， and good people. President Hu Jintao stated at the beginning of this year that “Innovation is the core of the nation’s competitiveness.”
